Moody's lowers DuBois view to negative

Moody's Investors Service said it revised DuBois Chemicals, Inc.'s outlook to negative from stable.

Moody's also said it affirmed DuBois's B2 corporate family rating, B1 (LGD 3) first-lien term loan and revolving credit facility and the Caa1 (LGD 5) second-lien term loan.

Moody's also said it affirmed DuBois's B2-PD probability of default rating.

The negative outlook reflects the company's failure to meet expectations for de-leveraging due to its acquisitive growth strategy and continued elevated leverage of higher than 6.5x, the agency said.

The company does have good liquidity supported by modest cash balances, expectations for positive free cash flow generation in the near-term and an undrawn $50 million revolving credit facility, Moody's said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.